For Multifamily Executive, Hamilton Zanze CEO Kurt Houtkooper details the reasons for optimism about the multifamily market and his company’s plans for 2024.Read
Banks Compete With Agency Lenders for Multifamily Loans
Fannie Mae and Freddie Mac are offering lower rates and faster service as they face increased competition from banks for multifamily lending business. In the first five months of 2014, Fannie Mae closed and sold $6 billion in multifamily loans compared to $13.6 billion for the same period in 2013.
Agency lenders were ordered by the Federal Housing Finance Agency (FHFA) to reduce their multifamily lending by 10% last year. This year, the FHFA is keeping the overall cap but reducing some restrictions. For example, loans for manufactured housing does not count toward the cap.
Interest rates offered by Fannie for multifamily loans have already fallen 50 basis points on average, as Fannie and its lenders are trying to stay competitive with banks and conduit lenders.
Read more at National Real Estate Investor